Chicago wheat falls after hitting three-year high on Black Sea disruptions

BEIJING: Chicago wheat futures fell on Monday after climbing to a three-year high in the previous session on grain export disruptions in the Black Sea region. Corn and soybeans gained.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) fell 0.54percent to USD7.79-3/4 a bushel by 0200 GMT. CBOT corn gained 0.8percent to USD5.40-3/4 a bushel, while soybeans rose 0.37percent to USD12.92-3/4 a bushel.

Wheat futures hit a three-year high on Friday, supported by reports that Russia’s strikes could include targets in the city centre of Kyiv and critical infrastructure elsewhere in Ukraine.

Authorities in Russia’s Rostov region declared a state of emergency on Friday, saying port closures and navigation disruptions in the Azov-Black Sea basin had led to a significant accumulation of agricultural products at farms.

News that a commercial vessel sank off the coast of Romania in the Black Sea on Thursday evening, likely after being hit, kept attention on war risks to shipping in the zone, traders said. Farmers and market analysts in Russia expressed scepticism on Thursday about measures the government is taking to maintain grain exports, with some calling for a cut to the winter sowing area to avoid a collapse in domestic prices.

In Ukraine, the 2027 planting campaign is at risk because farmers may lack the funds to sow crops after Russia’s blockade of seaports sharply curtailed exports, officials said on Thursday.

Traders are monitoring a shift in demand away from Russia and Ukraine, with some importers turning to European Union countries such as Romania, France and Poland.

Corn and soybean prices have drawn support from a Reuters report that the US administration plans to shield the farm sector from an expected expansion of waivers of biofuel laws. Corn and soyoil are widely used to produce biofuel.

The US is considering increasing biofuel quotas for the 2027 calendar year by roughly 500 million gallons to offset any damage caused by the soon-to-be-announced exemptions for smaller refineries.